1 Addressing service complexity and value through network

1 Addressing service complexity and value through network theory: MANY-TO-MANY MARKETING Professor Evert Gummesson Stockholm University, Sweden © E. Gummesson 2011

2 The opening slide shows that life is dynamic interaction in complex networks of relationships © E. Gummesson 2011

3 The 3 Research Pillars of the Naples Forum © E. Gummesson 2011

4 My special research pillar: NETWORKS & SYSTEMS conceptualized as MANY-TO-MANY MARKETING © E. Gummesson 2011

5 THE DEVELOPMENT OF NETWORKS IN MARKETING & SERVICE © E. Gummesson 2011

6 1960 s - present The marketing concept, traditional American marketing management & the marketing mix Customer oriented: centered on one party Customer © E. Gummesson 2011

7 FREQUENTLY ASKED QUESTION: What happened to the marketing mix and the [in]famous 4 Ps? MY ANSWER: They will still be around but. . . THE 4 Ps ARE NEITHER 4 NOR Ps ANY MORE AND THEY APPEAR IN A SERVICE CONTEXT OF COMPLEX RELATIONSHIPS, NETWORKS, AND INTERACTION THE MARKETING MIX OF THE 2000 s: © E. Gummesson 2011

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9 1990 s - present Relationship marketing (RM), CRM (customer relationship management), and one-to-one marketing Relationship oriented: centered on two parties Customer © E. Gummesson 2011 Supplier

2000 s - 10 Many-to-many marketing Network oriented: centered on many parties, ”a network of stakeholders” Customer Supplier © E. Gummesson 2011

11 Definition: “MANY-TO-MANY MARKETING describes, analyzes and utilizes the network properties of marketing. ” © E. Gummesson 2011

12 CONTRIBUTION TO A NEW SCIENCE OF MARKETING, SERVICE & VALUE: Network theory and systems theory consider the complexity and context of marketing and service as well as the parts and their place in the whole. © E. Gummesson 2011

13 The basic elements of network theory are nodes (people, organizations, machines and what have you) and links between these in a limitless number of patterns: Marketing, service and life as a whole can be described analyzed as interaction in networks of relationships © E. Gummesson 2011

A BUSINESS ILLUSTRATION TO THE APPLICATION OF NETWORK THEORY: AN AIRLINE ALLIANCE, FEBRUARY 2008 14 Air Canada Air China Air New Zealand Adria ANA All Nippon Airways 19 FULL PARTNERS 3 REGIONAL PARTNERS Blue 1 Asiana Airlines Croatia Airlines Austrian bmi british midland Star Alliance LOT Polish Airlines Lufthansa 11 SPECIAL SAS PARTNERS SAS Scandianvian Airlines Shanghai Airlines air Baltic Air China air greenland Air One Atlantic Airways Cimber Air City Airline Estonian Air Qantas Skyways Wideroe Singapore Airlines South African Airways Spanair SWISS TAP Portugal Thai United © E. Gummesson 2011 US Airways

Summing up: put the network eye-glasses on your noses © E. Gummesson 2011 15

16 SELECTED BIBLIOGRAPHY Evert Gummesson and closely related literature © E. Gummesson 2011

17 3 rd, revised edition (2008) Broadens the scope of RM from the customersupplier dyad toward a network and many-tomany view, and integrates with service-dominant (SD) logic. © E. Gummesson 2011

Many-to-Many Marketing in 18 Swedish (2004), Finnish (2005) and Norwegian (2006) © E. Gummesson 2011

19 An English and thoroughly updated version planned for 2011. It will treat manyto-many marketing in the light of network theory, S-D logic, and service science © E. Gummesson 2011 FORTHCOMING

Articles and book chapters: 2004 Gummesson, E. (2004), ”Service Provision Calls for Partners Instead of Parties. ” Commentary, Journal of Marketing, 68 (1), 20 -21. Lovelock, C. H. and Gummesson, E. (2004), “Whither Services Marketing? In Search of a New Paradigm and Fresh Perspectives, ” Journal of Service Research, 6 (5), 20 -41. 2006 Gummesson, E. (2006), “Many-to-many marketing as grand theory: A Nordic School contribution. ” In Lusch, R. L. and Vargo, S. L. , eds. , The Service-Dominant Logic of Marketing: Dialog, Debate, and Directions. New York: M. E. Sharpe, 339 -353. von Friedrichs Grängsjö, Y. and Gummesson, E. (2006), “Hotel Networks and Social Capital in Destination Marketing, ” Service Industry Management, 17 (1), 58 -75. Grönroos, C. (2006), “What Can a Service Logic Offer Marketing Theory? , ” in R. F. Lusch and S. L. Vargo (eds. ), The Service-Dominant Logic of Marketing: Dialog, Debate, and Directions. New York: M. E. Sharpe, 354 -364. Grönroos, C. (2006), “Adopting a service logic for marketing. ” Marketing Theory, 6 (3), 317 -333. © E. Gummesson 2011 20

2008 Vargo, S. L. and Lusch, R. F (2008), " Service-Dominant Logic: Continuing the Evolution, " Journal of the Academy of Marketing Science, 36 (1), 1 -10. Ballantyne, D. and Varey, R. J. (2008), ”The service-dominant logic and the future of marketing, ” Journal of the Academy of Marketing Science, 36 (1), 11 -14. Gummesson, E. (2008) “Extending the Service-Dominant Logic: From Customer Centricity to Balanced Centricity”, Journal of the Academy of Marketing Science, 36 (1), 15 -17. Maglio, P. P. , & Spohrer, J. (2008). Fundamentals of service science. Journal of the Academy of Marketing Science, 36 (1), 18 -20. Payne, A. F, Storbacka, K. and Frow, P. (2008), “Managing the co-creation of value, ” Journal of the Academy of Marketing Science, 36 (1), 83 -96. Gummesson, E. (2008), “Customer centricity: reality or a wild goose chase? ”, European Business Reveiew, 20, (4), 315 -330. 2009 Gummesson, E. and Polese, F. (2009), “B 2 B is not and island!” The Journal of Business & Industrial Marketing, 24 (5 -6), 337 -350. © E. Gummesson 2011 21

2010 Maglio, P. P. , Kieliszewski, C. A. , & Spohrer, J. C. , Eds. (2010). Handbook of Service Science, Springer, New York. Gummesson, E. (2010), “The Future of Service Is Long Overdue. ” In Maglio, P. P. , Kieliszewski, C. A. , & Spohrer, J. C. , Eds. , Handbook of Service Science, Springer, New York, 625 -642. Gummesson, E. , Lusch, R. F. and Vargo, S. L. (2010), “Transitioning From Service Management to Service-dominant Logic: Observations and Recommendations, ” International Journal of Quality and Service Sciences (IJQSS), Special Issue of the 2009 Naples Forum on Service, 2, (1), 8 -22. Gummesson, E. (2010), “The new service marketing. ” In Baker, M. J. and Saren, M. , eds. , Marketing Theory: A Student Text, 2 nd ed. , Sage, London, 399 -421, Gummesson, E. and Mele, C. (2010), “Marketing as value co-creation through network interaction and resource integration”, Journal of Business Market Management, no. 4, 181 -198. Mele, C. , Pels, J. , Polese, F. (2010) “A brief review of systems theories and their managerial applications”, in Journal of Service Science, 2 (1/2), 126 -135. Grönroos, C. (2010), ”Relatonship Marketing as Promise Management, ” in Maclaren, P. , Saren, M. , Stern , B. and Tadajewski, M. , Eds. , The Sage Handbook of Markeing Theory, Sage, London, 397 -412. © E. Gummesson 2011 22

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